The international offering was 3.17 times subscribed, with well-known institutions such as JPMorgan Asset Management (Asia Pacific) Limited, Rui Yuan Fund, Orient Asset Management (Hong Kong) Limited, and Tianhong Asset Management Co., Ltd. crowding in to subscribe and becoming cornerstone investors, as Suzhou Dongshan Precision Manufacturing Co., Ltd. (02384), the leader in "AI PCB + optical modules," officially listed on the Hong Kong Stock Exchange.
According to Zhitong Finance APP, Suzhou Dongshan Precision Manufacturing Co., Ltd. (02384) officially listed on the Hong Kong Stock Exchange on October 28, becoming a market allocation focus thanks to its high-growth performance, highly promising industry growth prospects, and its halo as the first "AI PCB + optical modules" stock. The company's issue price was HK$86.8, with an AH premium reaching 43.9%, and the undervaluation of its H-shares attracted long-term value investors.
As a scarce integrated "AI PCB + optical modules" target and an industry leader with globalized operations, the company's H-share listing is undoubtedly an important step toward capital globalization.
Institutional investors recognize long-term value
With this listing on the Hong Kong stock market, Suzhou Dongshan Precision Manufacturing Co., Ltd. achieved dual A+H listing status, continuously consolidating its leadership position in the global market through capital and business globalization strategies, while also advancing its two core tracks of "AI PCB + optical modules," bringing sustainability and highly certain expectations for performance growth.
The active participation of institutional investors in the company's Hong Kong listing reflects long-term capital's recognition of the company's industry position and future growth potential. According to the prospectus, the company's global offering comprised approximately 114 million H-shares, with a final offer price of HK$86.80 per share, raising approximately HK$9.876 billion.
Notably, the offering successfully introduced 20 cornerstone investors, with total subscription amounts of approximately US$680 million, which, based on the offering size disclosed during the subscription period, exceeds 50% of the total base offering shares under the global offering without exercising the offer size adjustment option and over-allotment option. The relatively high proportion of cornerstone investor subscriptions highlights institutional capital's attention to the investment value of Suzhou Dongshan Precision Manufacturing Co., Ltd.
Especially against the backdrop of Hong Kong stock market investors placing greater emphasis on corporate fundamentals, earnings quality, and long-term growth certainty, the active participation of institutional investors reflects long-term capital's optimism about the company's existing industrial foundation and future business growth space.
It is reported that Suzhou Dongshan Precision Manufacturing Co., Ltd. has four major businesses: PCB, precision components, touch panels and LCD panels, and optical modules, with diversified drivers fueling high performance growth. The PCB business remains the foundation, maintaining revenue growth in the first half of 2026, contributing 45.1%, with product structure optimization and a continuously rising proportion of AI PCB; precision components benefited from significantly increased demand in the automotive industry, contributing 23.7% of revenue; and the optical module business is a new growth engine, bringing significant performance contribution after the acquisition and consolidation of Source Photonics in 2025, with first-half revenue of RMB 5.351 billion, contributing 19.2%.
Driven by diversified businesses, the company's revenue has maintained growth every year, with performance growth accelerating in 2026: first-half revenue of RMB 27.798 billion, up 63.95% year-on-year, net profit of RMB 2.985 billion, up 293.5% year-on-year, net margin improved to 10.7%, and annualized ROE reaching 24.5%.
Moreover, the company achieved high-quality performance growth, with operating cash flow remaining in net inflow status in prior periods. From 2023 to the first half of 2026, net inflows were RMB 5.041 billion, RMB 4.978 billion, RMB 4.902 billion, and RMB 2.269 billion, respectively. After deducting net outflows from investing and financing activities, there was still surplus cash flow. In the first half of 2026, the net increase in cash was RMB 1.041 billion, and as of June, the company's cash and equivalents reached RMB 6.948 billion.
Optical modules become the core future highlight
Notably, Suzhou Dongshan Precision Manufacturing Co., Ltd. possesses technological leadership and scale advantages in PCB and optical modules, which is also the most core highlight of the company's H-share listing. In the PCB field, the company has professional technology for high-layer PCBs with up to 78 layers and high-order HDI. According to CIC, based on 2025 revenue, it ranks third among global PCB suppliers and second among global flexible board suppliers. In the optical module field, its subsidiary Source Photonics is one of only three companies globally with independent design and manufacturing capabilities for high-speed optical chips and optical modules, with dual technology route reserves in EML and silicon photonics. According to CIC, based on 2025 revenue, the company ranks seventh in the global optical module market.
Of the net proceeds from this fundraising, approximately 64.5% is expected to be used for building new facilities and upgrading existing production facilities and production lines, including capacity expansion for high-speed EML chips and optical modules at production facilities in mainland China, and building a new production facility in Zhuhai for Ultra Assembly focused on high-end PCB; approximately 20.0% is expected to be used for potential strategic investments or acquisitions to consolidate the company's technological leadership and market leadership in its core businesses.
Suzhou Dongshan Precision Manufacturing Co., Ltd. will use most of the funds for capacity expansion of high-end PCB, high-speed EML chips, and optical modules, demonstrating the weight of the two major businesses of "AI PCB + optical modules" in the company's development strategy.
In fact, in addition to business advantages, the company may see demand expectations brought by the development prospects of the two major tracks: first, large-scale AI infrastructure is still accelerating growth. According to forecasts from multiple institutions, the total capital expenditure of the global top nine CSPs in 2026 will exceed US$957 billion, up 106% year-on-year, and will exceed US$1.5 trillion in 2027. JPMorgan expects total global intelligent computing center investment to reach US$5.5 trillion by 2030. Second, industry demand growth forecasts: according to CIC, for example, the edge AI device PCB industry and data center PCB industry have compound growth rates of 64.2% and 21.5% respectively over the past five years, with the global market size compound growth rate also reaching 21.5%.
Overall, investors favor Suzhou Dongshan Precision Manufacturing Co., Ltd. mainly for three reasons: first, a diversified business structure drives performance, and performance is in an accelerating growth cycle; second, unlike other high-growth targets in the AI track, the company achieves high-quality growth without sacrificing profits and cash flow, providing sustainability; third, "AI PCB + optical modules" bring high growth expectations, and with its positioning advantages, the core fundraising investment and industry prospects both bring valuation appeal to the company.
In addition, most investment banks are also very optimistic about the company. Among them, Shanghai Securities' research report believes that major overseas cloud service providers will continue to increase investment in computing infrastructure, with expansion pace continuing to accelerate, and AI computing power pushing the company's "optical modules + AI PCB" from capability building to value release. Orient Securities' research report states that the company's integrated layout of optical chips + optical modules accelerates breakthroughs in high-end products and capacity expansion, and is expected to fully benefit from the growth of the AI PCB business. Suzhou Dongshan Precision Manufacturing Co., Ltd.'s current H-share valuation is not high, below the market's 10x+ pricing for high-growth AI tracks, and with a relatively high AH premium, it has long-term allocation value.
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